This paper presents an alternative explanation of the gender pay gap resting on a simple Hotelling-style dyopsony model of the labor market. Since there are only two employers equally productive women and men have to commute and face travel cost to do so. We assume that a fraction of the women...

This paper presents an alternative explanation of the gender pay gap resting on a simple Hotelling-style dyopsony model of the labor market. Since there are only two employers equally productive women and men have to commute and face travel cost to do so. We assume that a fraction of the women...

This paper provides a labour supply explanation to the observation that in Germany employment changes are asymmetric during the business cycle. Employment increases are slower, because the reservation wage of workers increases in times of job uncertainty. Workers are afraid in those periods of...

This paper investigates the behaviour of employers' monopsony power and workers' wages over the business cycle. Using German administrative linked employer-employee data for the years 1985-2010 and an estimation framework based on duration models, we construct a time series of the firm-level...

Using linked employer-employee panel data for West Germany that include direct information on the competition faced by plants, we investigate the effect of product market competition on the gender pay gap. Controlling for match fixed effects we find that intensified competition significantly...

This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likely it is to opt for...

This paper investigates the behaviour of employers' monopsony power and workers' wages over the business cycle. Using German administrative linked employer-employee data for the years 1985-2010 and an estimation framework based on duration models, we construct a time series of the firm-level...